[Asia Economy Reporter Kiho Sung] The domestic automobile industry is igniting competition in the small sport utility vehicle (SUV) segment from the beginning of the year. While Kia Motors' Seltos is dominating the small SUV market, Korea GM and Renault Samsung Motors are challenging with the Trailblazer and the coupe-type SUV XM3, respectively, putting their companies' fates on the line, making the competition even fiercer.
According to the automobile industry on the 23rd, the Seltos, launched in July last year, has steadily sold more than 5,000 units per month, emerging as a strong player in the small SUV market. The cumulative domestic sales have exceeded 35,000 units, and it also holds the record as the first small SUV to achieve monthly sales of over 6,000 units.
The Seltos is praised for capturing both quietness and strong output with its 1.6ℓ gasoline turbo engine model and 1.6ℓ diesel engine model. Additionally, its various convenience features have led to satisfaction levels that surpass its class, which is another strength.
Korea GM's Trailblazer, unveiled on the 16th of last month, is attracting attention as a dark horse to stop the Seltos' solo run. The Trailblazer is a domestically produced car, with planning, development, and production all carried out in Korea. Korea GM expects it to be a turning point for business normalization, and labor union officials attended the launch event, reflecting high expectations from both labor and management.
The Trailblazer's major strengths include the efficiency and driving performance of the E-Turbo engine, already proven through the Malibu. Through this, it has obtained certification as a three-type low-emission vehicle, allowing it to receive various benefits granted to eco-friendly vehicles. In Seoul, for example, it can receive a 50% discount on public parking lots, an 80% discount on subway transfer parking lots, a 50% discount on congestion tolls in the Namsan 1/3 tunnels parking lots, and a 20-50% discount on airport parking lots, among other benefits.
The XM3, which has just started pre-orders, shows Renault Samsung Motors' determination with its aggressive pricing. Renault Samsung Motors has finalized the price of the premium crossover XM3, officially launching early next month, starting from 17.95 million KRW.
The XM3 consists of two models by trim: 1.6 GTe and TCe260. The selling price ranges from 17.95 million to 22.7 million KRW for the 1.6 GTe, and from 21.75 million to 26.95 million KRW for the TCe260. Compared to competing vehicles, the Seltos, priced between 19.65 million and 28.65 million KRW depending on the trim, and the Trailblazer, priced between 19.95 million and 28.3 million KRW, the XM3 is nearly 2 million KRW cheaper. Considering that consumers choosing small SUVs emphasize 'cost-effectiveness,' this is expected to be a strong competitive advantage.
An industry official said, "In the first half of this year, each company is emphasizing practicality and individuality by releasing new small SUVs. This is aimed at targeting the millennial generation, which has emerged as a new consumer group," adding, "Especially since these models will be key to stabilizing each company's management, competition is expected to become even fiercer."
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